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SS1: COMMERCE - 2ND TERM

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  1. Modern Trends in Retail Business | Week 1
    2 Topics
    |
    1 Quiz
  2. The Wholesaler | Week 2
    5 Topics
    |
    1 Quiz
  3. Warehouse | Week 3
    3 Topics
    |
    1 Quiz
  4. Foreign Trade (International) | Week 4
    6 Topics
    |
    2 Quizzes
  5. Tariffs & Reasons for The Imposition of Tariffs | Week 5
    5 Topics
    |
    1 Quiz
  6. Functions of Customs & Exercise | Week 6
    4 Topics
    |
    2 Quizzes
  7. Commodity Exchange | Week 7
    7 Topics
  8. Sole Proprietorship | Week 8
    2 Topics
    |
    1 Quiz
  9. Partnership | Week 9
    5 Topics
    |
    6 Quizzes
  10. Money | Week 10
    3 Topics
    |
    2 Quizzes



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New Modern trends have been introduced in the retailing business because of the dynamic nature of commercial activities. These trends have actually enhanced and facilitated business activities. Some of the modern trends include;

  1. Self-service
  2. After-sale service
  3. Branding
  4. Party selling
  5. Vending machine
  6. Pre-packaging
  7. Credit card

(a) Self-Service

Customers do their shopping with little or no assistance from sales attendants. Goods are displayed on the shelves with price tags on them. Customers walk, move around and inspect and select goods of their choice and make payment to the cashier. There is no room for bargaining which helps to save time. Baskets and trolleys are provided for customers to use for putting the items selected from the shelves.

Self Service
Customer inspecting shoes

Advantages

1. It encourages impromptu, buying which increase sales.

2. Customers make choices without any persuasion.

3. It quickens customers shopping.

4. It saves costs that would have been expended on payments of sales attendants.

Disadvantages

1. It requires large space for its operation.

2. No personal attention is given to customers.

3. It deals with limited goods

4. There is no room for inspection of the products.

5. Self-service poses a threat to full employment.

(b) After-Sales Service

Service rendered by the supplier or seller after the purchaser of a product is called After-sales service. It does not apply to all items. It involves mostly durable items such as electrical, electronic furniture and fittings, machines, etc. The following are some of the services rendered, installation, repair, delivery, etc.

(c) Branding

This is the differentiation of similar products with names or trademarks of companies or firms by different producers. Brand names are registered under the trademarks Act of 1938. Brand names of soft drinks are examples which include Coca-Cola, Pepsi, 7up, Fanta, etc while detergents are elephant, ariel, bimbo, omo, etc.

Coca Cola Branding
Coca-Cola Branding

Advantages

1. It helps to detect imitation and to prevent it.

2. It helps to identify a choice product by consumers.

3. It assists inspection and ordering of goods by appropriate description.

4. Branding encourages competitive advertising because it differentiates similar products.

(d) Party Selling

It is a system where party hosts or hostesses are used by manufacturers to display and sell their goods during parties. The manufacturers may assist in organizing such parties which turn out to be a potential market for the products.

Pepsi Party in Nigeria
Pepsi Party in Nigeria

(e) Vending Machine

This is a retail outlet that automatically dispenses pre-packed items such as drinks stored in it whenever the appropriate value coin is inserted. These are located in areas where a large number of people congregate such as offices, schools,s, and sports arenas.

Vending Machines
Vending Machine

Advantages of Vending Machine

Vending machine has the following benefits

(i) It ensures automatic sales

(ii) There is uniform price

(iii) It is useful for selling convenience goods

(iv) It ensures self-service

(v) It eliminates wastage of time

(vi) It provides twenty four hours service

Disadvantages of Vending Machine

(i) No refund of cash balance

(ii) It has a limit to a range of goods

(iii) It encourages pilfery

(iv) Goods sold through vending machines may be high as a result of the cost of machine itself.

(v) There may be a reduction in sales when machines break down or are faulty.

(f) Pre-packaging

This is the act of introducing good containers for a product also for protecting the product which also helps the way it is handled.

pre packaged products
Pre-packaged products

Advantages of Pre-packaging

Pre-packaging has the following advantages

(i) Easy identification of product

(ii) It relieves the burden of packaging by the middleman

(iii) It ensures quality of goods

(iv) It facilitates self-service

(v) It is a means of advertisement

(vi) It will be very easy to handle when goods are packaged

(vii) Pre-packaging protects the product

Disadvantages of Pre-packaging

(i) It is expensive

(ii) It prevents actual inspection of goods

(iii) It increases the price of goods as a result of pre-packaging

(g) Credit Card

This is a system which involves the use of plastic cards to purchase goods and services on credit from specified sellers up to a specific amount and payment for such goods and services are later paid for. The use of credit cards in modern days now leads to a cashless economy.

Use of credit cards

Advantages of Credit Cards

(i) It promotes credits purchases

(ii) It is easily handled

(iii) It eliminates carrying of cash

(iv) There is a reduction in armed robberies

Disadvantages of Credit Cards

(i) No room for bargaining

(ii) There is possibility of inability to recover debits

(iii) It increases the price of goods

(iv) It can be faked

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